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holding a portfolio of securities across sections and industries can reduce risk through diversification because a) it lowers the individual securities risk premiums b) it
holding a portfolio of securities across sections and industries can reduce risk through diversification because
a) it lowers the individual securities risk premiums
b) it lowers the portfolio's non diversifiable risk
c)it reduces systemic risk of the portfolio
d) the portfolio standard deviation is lower than the weighted average of the individual security standard deviations
e) it lowers the beta of the portfolio to to 0
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